The Credit Suisse Research Institute (CSRI) published its thirteenth global wealth report. Wealth grew at a rapid pace in 2021. By the end of the year, global wealth, according to the prevailing exchange rates, stood at a total of $463.6 trillion, an increase of 9.8%
Wealth per adult grew by 8.4% to $87,789.
For comparison, the average wealth for an adult in Israel was $273,420.
If we ignore fluctuations in exchange rates, in 2021 total accumulated wealth increased by 12.7%, the fastest annual growth ever.
However, factors such as inflation, rising interest rates and declining trends in property prices may reverse the impressive growth trend recorded last year in 2022.
2021 was an exceptional year for the wealth of households thanks to the widespread increases in stock prices and the positive environment that was created as a result of the policy of the central banks in 2020, i.e. lowering interest rates, even at the cost of inflationary pressures.
The increases in interest rates in 2022 are already having a negative impact on bond and stock prices and are also expected to damage investments in non-financial assets.
Inflation and the higher interest rates may slow down the growth in household wealth in the near future, even if the nominal value of the gross domestic product (GNP) will continue to grow at the relatively fast pace that was predicted last year. Joseph Wolff, CEO of Credit Suisse Israel : "This year's World Wealth Report presents interesting data regarding the creation of wealth in Israel, with a special emphasis on global developments.
Although post-pandemic economic impacts are present in most countries, Israel's wealth growth per adult shows strong resilience in 2021. According to the report,
were we wrong
We will fix it!
If you found an error in the article, we would appreciate it if you shared it with us